Originally posted by Twisterdog
So when an insurance company pays that $10 charge for one aspirin,
But the insurance company doesn't pay $10.00 for that aspirin. Like someone else mentioned, they have their "negotiated rates" and that's what they pay. They might actually pay $1.00 for that aspirin and the hospital will write off the other $9.00.

I have a lump on my thyroid that I have checked every couple of months. I have had biopsies done to see if it was cancer (it's not), ultrasounds to see how big it is and exactly where it's located, and bone density tests about every 2 years to make sure the medication isn't turning my bones to mush, along with the blood tests and the doctor's visits ($100.00 for about 10 minutes of his time). All of this is quite expensive. They do all the test "in-house" which saves money because I don't have to go to the hospital and pay their fees, but the bill for my most recent ultrasound came to over $2,500. The "net" bill, after discounting for negotiated rates, came to about $800.00.

Knowing how the insurance companies have these negotiated rates, had I not had insurance, the first thing I would have done when I got the $2,500.00 bill was ask them to discount it to something a little more realistic. Doctors and hospitals will do that for those who don't have insurance, but you have to ask - and may have to fight for it. There have already been programs on TV (60 minutes and such) where they discuss this. The hospitals charge everybody the same thing and it's up to the person/insurance company receiving the bill to negotiate the actual amount with them. The hospital would rather negotiate with someone without insurance because then they have a better chance of recouping at least some of the bill whereas if they say no way, we need the full amount, chances are theyw won't collect any of it.